If you ever told someone that you were looking at using short term cash loans to help afford the emergencies, you would probably hear a gasp and the person telling you not to bother. There are a lot of myths behind short term cash loans and a lot that people do not really understand. There is no doubt that short term cash loans can be risky but there are times that the good outweighs the bad.

The main benefit is that there are no credit checks on short term cash loans, which brings the myth that anybody can borrow the money. This is one of those myths that needs to be set straight; it will all depend on the lender of the short term cash loans over whether you will actually get the money. There are requirements set for them, which will mean that not everybody will be able to get their hands on short term cash loans. The main requirements are your employment status and the amount you earn each month.

The interest rates are a scary thought for many when it comes to short term cash loans. Many people believe that the interest rates are so high that they are not worth it. Yes, the APRs on short term cash loans are high but that is not something that you should worry about too much. These loans are designed for short term borrowing, which means that you will need to pay it back within the first 31 days. Because of that, there are other fees on the loans, which are lower than your overdraft fees or charges for going over your credit limit.

Of course, the problem with the APR levels is that if you do decide to keep the money for longer than you should then you will need to pay them. This is something to bear in mind when you are looking at taking out the loans.

Another scary thought for many people is the damage that the loans can do to your credit rating. Many people believe that having to borrow this money will make you look irresponsible and will damage your credit rating. However, these loans can actually help your rating because you are able to show that you can borrow money and pay it back on time. Yes, they can do damage if you refuse to pay the money back on the date that you agree to; that is the same with any type of loan that you take out.

There are many stories behind short term cash loans and you will need to bear them in mind when you look at applying for one. However, most of the time, the stories are told because not so many people understand what this type of lending is all about. They are an excellent way to bridge the gap between paydays when you are struggling to afford the emergencies one month. However, that is all they are good for; there are many times that you should never consider using them.